![]() |
Markets plunge after Trump slaps tariffs on world |
What do tariffs do?...
Tariffs on imports are designed to raise the price of imported goods and services to discourage consumption. The intention is for citizens to buy local products instead, thereby stimulating their country's economy. Tariffs therefore provide an incentive to develop production and replace imports with domestic products.What are the effects of tariffs?...
Tariffs affect consumers in two main ways. First, they increase the cost of what we buy when the added cost, which companies pay as a tax to the federal government, gets passed on to consumers. Second, they might reduce the range of products available by making some importation unprofitable.
On what tariffs do, it would seem the push for citizens to buy local products would not be so necessary when you have a thriving economy. According to Chicago Booth Review...
"The White House released a brief on October 30, just days before the election, touting the latest quarterly data. Under the Biden administration, real GDP rose 12.6 percent, rightly cheered in the report as “a historically robust expansion” that repeatedly defied forecasts. Since the pandemic, economic growth in the US has far outpaced that of our peer nations. Business investment is up; unemployment is low."
The above is what Joe Biden passed along to Donald Trump.
Sure, we want everyone to buy American. But, is that need so justified when we have a![]() |
Tariffs stock market concerns |
China tariffs charged to the USA, 67%; Trump charge 34%. Israel charges 33%; U.S. 17%. Japan 46%; U.S. 24%. India 52%; U.S. 26%. Here's a switch, U.K. 10%; U.S. 10%. And again, United Arab Emirates 10%; U.S. 10%. Likewise, Australia 10%; U.S. 10%.
There's more...
The White House told CNBC’s Eamon Javers on Wednesday that the new reciprocal rate on China will be added to existing tariffs totaling 20%, meaning the true tariff rate on Beijing under this Trump term is 54%.
Trump said his plan will set a 10% baseline tariff across the board. But as his charts make clear, many countries are set to face significantly higher rates. “We will charge them approximately half of what they are and have been charging us,” Trump said in an announcement in the Rose Garden at the White House.
Here is some U.S. tariff history from Wikipedia...
The United States pursued a protectionist policy from the beginning of the 19th century until the middle of the 20th century. Between 1861 and 1933, they had one of the highest average tariff rates on manufactured imports in the world. After 1942, the U.S. began to promote worldwide free trade. After the 2016 presidential election, the US increased trade protectionism.
It would appear that world trade has proven one of the reasons for the current tariff policies of the U.S. In the past, America has been a fair country, working with its allies around the world for equal economic prosperity. That is, until Donald Trump started his demolition of diplomacy. The outlook now is increased consumer prices, a potential trade war, and a possible recession. Is this what you elected Donald Trump for?